From travel mishaps to retail regrets: Hidden credit card benefits and protections most people ignore

Ever read through that booklet that originally came with your credit card? While many people toss it aside, it actually contains information on card insurance and protection perks that could save you hundreds or even thousands of dollars.

These perks typically kick in when something goes wrong with certain transactions you’ve used your card for, such as new purchases or travel bookings. For example, your credit card might cover you when your new headphones break, your flight gets canceled or someone dings your rental car.

Premium cards like the Platinum Card from American Express, Chase Sapphire Reserve and Capital One Venture X offer the strongest protection packages. Yes, these cards charge high annual fees, but just one covered incident can more than make up for that cost. That’s why these protections are more than marketing fluff.

Let’s explore how these protections work and which credit cards offer the strongest benefits.

In this article

• Purchase protections

• Cell phone protection

• Travel protections

• How to maximize your credit card protections

Purchase protections

With the right credit card in hand, you can protect your qualified purchases through extended manufacturer’s warranties, limited coverage against damage or theft and even reimbursements when stores refuse your returns.

Extended warranty coverage

Extended warranty protection adds up to an additional year of coverage beyond the manufacturer’s warranty on eligible purchases, typically for products with original warranties of three years or less. This means your new fridge, TV or laptop stays protected longer without needing to buy one of those overpriced extended warranties at checkout.

Most cards that offer this benefit increase the original manufacturer’s warranty by up to one additional year. So a product with a one-year warranty gets two years of total protection when purchased with an eligible card.

Several premium and even some no-annual-fee cards offer strong extended warranty coverage:

• Citi Double Cash. Doubles warranties of 2 years or less | $0 annual fee

• Chase Sapphire Preferred. Adds 1 year to warranties of 3 years or less | $95 annual fee

• American Express Gold Card. Adds 1 year to warranties of 5 years or less | $325 annual fee

• Capital One Venture X. Adds 1 year to warranties of 3 years or less | $395 annual fee

What extended warranty covers

Extended warranties typically cover mechanical failures and defects that would have been covered by the original manufacturer’s warranty. However, they normally don’t cover mishaps like broken phone screens or water damage to laptops.

Most card issuers exclude certain categories from coverage. Items like cars, boats, software, plants and anything with a warranty longer than three to five years usually don’t qualify. Consumable items that naturally deplete (like ink cartridges or batteries) and pre-owned items are also typically excluded.

When your item breaks after the manufacturer’s warranty expires, you’ll need to contact your card’s benefits administrator, not the retailer nor the manufacturer. Most cards require you to file a claim within 90 days of the product failure to qualify for this coverage.

You’ll need your original purchase receipt, warranty information and credit card statement showing the purchase. The claim process typically involves filling out a form, providing documentation and sometimes shipping the damaged item to the card issuer for inspection.

Purchase protection against damage and theft

Purchase protection covers items that are damaged or stolen within a specific time frame after you buy them — typically 90 to 120 days. If your new headphones get stolen from your gym locker or your child breaks your brand-new tablet, your credit card might cover the repair or replacement cost.

This protection applies to most personal items with coverage limits usually ranging from $500 to $10,000 per claim, depending on your card. The annual maximum benefit typically caps at around $50,000 across all claims.

Premium credit cards generally offer the strongest purchase protection benefits:

• Blue Cash Preferred Card from American Express. Covers 90 days from purchase date, up to $1,000 per claim, $50,000 annual maximum | $95 annual fee

• Capital One Venture. Covers 90 days from purchase date, up to $500 per claim, $50,000 annual maximum | $95 annual fee

• Chase Sapphire Reserve. Covers 120 days from purchase date, up to $10,000 per claim, $50,000 annual maximum | $550 annual fee

• American Express Platinum. Covers 90 days from purchase date, up to $10,000 per claim, $50,000 annual maximum | $695 annual fee

What purchase protection covers

Purchase protection typically covers stolen or damaged items, including accidental damage. Most cards exclude lost (rather than stolen) items, perishable goods, motorized vehicles and items damaged due to normal wear and tear.

To submit a successful claim, you’ll need proof of theft, such as a police report, or documentation of the damage, such as photos or repair estimates. You’ll also need your original receipt and the credit card statement showing the purchase.

Keep in mind that purchase protection is typically secondary to other insurance policies you might have, like homeowners insurance or renters insurance. Your card will only cover what your primary insurance doesn’t, including deductibles.

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Return protection

Return protection steps in when a retailer refuses to accept a return because you’ve exceeded their return window or lost the receipt. This benefit essentially gives you an extended return period beyond the retailer’s policy.

With return protection, your credit card issuer will reimburse you for eligible items the store won’t take back, usually within 90 days of purchase. Maximum reimbursements typically range from $300 to $500 per item with annual limits around $1,000.

Return protection has become less common in recent years, but several premium cards still offer this valuable benefit:

• American Express Gold. Covers 90 days from purchase date, up to $300 per item, $1,000 annual maximum | $250 annual fee

• Chase Sapphire Reserve. Covers 90 days from purchase date, up to $500 per item, $1,000 annual maximum | $550 annual fee

• American Express Platinum. Covers 90 days from purchase date, up to $300 per item, $1,000 annual maximum | $695 annual fee

What return protection covers

Return protection typically applies to items in new or like-new condition that the store refuses to take back. But certain items are generally excluded, including perishables, jewelry, cosmetics, digital downloads and custom-made items.

To use return protection, first try returning the item to the store. If the store refuses you a refund, get your itemized receipt, credit card statement showing the charge and any documentation of the store’s refusal and then contact your card’s benefit administrator within the eligible time frame.

You’ll want to document the merchant’s return policy — even if you don’t need to submit it up front, having a written or emailed copy can speed your claim. You may also need to ship the item to the card issuer for inspection before your claim is approved.

Cell phone protection

Cell phone protection can save you hundreds by covering repair or replacement costs if your phone is damaged or stolen — just make sure you pay your monthly phone bill with a card that offers this benefit.

This perk essentially acts as complimentary phone insurance, potentially saving you $10 to $15 per month on carrier protection plans. Most cards that offer this benefit provide coverage up to $600 to $800 per claim after a small deductible.

The protection usually extends to all phones listed on your monthly bill when you pay that bill with your eligible credit card. Most cards limit you to two claims per 12-month period with a maximum annual benefit around $1,000 to $1,600.

The coverage you receive is generally secondary, meaning it kicks in after any other insurance you might have, but the low deductibles often make it worthwhile even as supplemental protection.

Among the cards that offer cell phone protection are:

• Chase Freedom Flex. Covers up to $800 per claim, $1,000 per 12-month period, $50 deductible | $0 annual fee

• Wells Fargo Active Cash. Covers up to $600 per claim, $1,200 per 12-month period, $25 deductible | $0 annual fee

• U.S. Bank Shield. Covers up to $600 per claim, $1,200 per 12-month period, $25 deductible. $0 annual fee.

• Capital One Venture X. Covers up to $800 per claim, $1,600 per 12-month period, $50 deductible. $395 annual fee.

• American Express Platinum. Covers up to $800 per claim, $1,600 per 12-month period, $50 deductible | $695 annual fee

What cell phone protection covers

Cell phone protection typically covers damage like cracked screens, water exposure and theft. Most policies require you to file a police report within 48 hours for theft claims. Most issuers typically exclude normal wear and tear, cosmetic damage that doesn’t affect functionality and lost phones.

To make a claim, you’ll need documentation of the damage or theft, your credit card statement showing you paid your most recent cell phone bill with the eligible card and receipts for any repair or replacement costs. Most issuers require you to file claims within 60 days of the incident.

Travel protections

While purchase protections help with the things you buy, travel protections safeguard your trips and related expenses. These benefits can provide valuable peace of mind and substantial savings when travel plans go awry, from flight delays and lost luggage to rental car damage.

Trip cancellation, interruption and delay insurance

Trip cancellation, interruption and delay insurance acts as a three-layered safety net when travel plans go sideways. These benefits cover you before your trip if you need to cancel, during your trip if you need to come home early and when you’re stuck in transit due to significant delays.

Cancellation and interruption benefits reimburse your nonrefundable expenses when covered events force you to scrap plans entirely or cut a trip short. Meanwhile, delay insurance covers unexpected costs like hotels and meals when your flight or train sits on the tarmac or tracks for hours. Coverage limits typically range from $1,500 to $20,000 for cancellations and $500 per traveler for delays, depending on your card.

Unlike standalone travel insurance that can cost 4% to 12% of your trip’s total price, these protections come built into your credit card with no additional fees. Simply pay for your travel arrangements with eligible cards like these to automatically activate your coverage:

• Chase Sapphire Preferred. Covers canceled or interrupted trips up to $10,000 per person, $20,000 per trip for you, a spouse or domestic partner and dependent children. Covers delayed trips after 12-hour or overnight delays up to $500 per covered traveler | $95 annual fee

• Capital One Venture X. Covers cancelled or interrupted trips up to $2,000 per person for primary cardholder and immediate family. Covers delayed trips after 6-hour or overnight delays up to $500 per passenger | $395 annual fee

• Chase Sapphire Reserve. Covers cancelled or interrupted trips up to $10,000 per person, $20,000 per trip for you, a spouse or a domestic partner and dependent children. Covers delayed trips after 6-hour or overnight delays up to $500 per covered traveler | $550 annual fee

• American Express Platinum. Covers cancelled or interrupted trips up to $10,000 per trip, $20,000 per year for primary cardholder and family members. Covers delayed trips after 6-hour delays, up to $500 per trip | $695 annual fee

What trip cancellation, interruption and delay insurance covers

Trip cancellation and interruption typically covers unexpected illness or injury to you or a traveling companion, severe weather that prevents travel, jury duty or an incident at your destination that could put you at risk. Some cards also cover quarantine requirements or job loss.

Trip delay reimbursement covers reasonable expenses like meals, lodging, toiletries and other personal items when your flight or other common carrier transportation is delayed for the specified time period. This benefit can save you from spending hundreds on unexpected hotel stays and meals during delays.

Keep in mind that most policies exclude pre-existing medical conditions, trips booked to receive medical treatment, foreseeable events like traveling during hurricane season to a hurricane-prone area or changes in plans due to financial circumstances. Card issuers normally exclude trips to countries going through war or civil unrest.

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Rental car insurance

Credit card rental car coverage allows you to decline the rental company’s collision damage waiver, which can save you $15 to $30 per day. This benefit typically covers damage to or theft of your rental vehicle but doesn’t include liability insurance for damage to other vehicles or property.

There are two types of rental car coverage: primary and secondary. Primary coverage kicks in before your personal auto insurance, meaning you avoid filing claims with your regular insurer that may raise your rates. Secondary coverage only pays what your personal auto policy doesn’t cover, including deductibles.

To activate this benefit, you typically need to decline the rental company’s collision damage waiver and pay for the entire rental with your credit card. The named cardholder must be the primary driver listed on the rental agreement, and coverage typically lasts 15 to 30 consecutive days, depending on the card.

Many premium travel cards offer rental car coverage, including:

• Chase Sapphire Preferred. Offers primary coverage up to $60,000, excludes rentals over 31 days | $95 annual fee

• Capital One Venture X. Offers primary coverage up to $75,000, excludes rentals over 15 days domestic, 31 days international | $395 annual fee

• Chase Sapphire Reserve. Offers primary coverage up to $75,000, excludes rentals over 31 days | $550 annual fee

• American Express Platinum. Offers secondary coverage up to $75,000, excludes rentals over 30 consecutive days | $695 annual fee

What rental car insurance covers

Credit card rental car insurance typically covers physical damage to or theft of the rental vehicle, towing charges related to covered damage, and loss-of-use charges imposed by the rental company while the car is being repaired.

Most policies exclude luxury and exotic and antique cars, motorcycles, recreational vehicles and car-sharing services like Turo. And while coverage typically works for car rentals abroad, certain countries may be excluded.

To improve your odds of claim approval, make sure to take photos of any damage and get a copy of the accident report and the rental company’s damage estimate. If your rental was stolen, you’ll typically need a police report.

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Baggage protections

Baggage protection comes in two forms: delayed baggage reimbursement and lost luggage reimbursement. These two benefits help cover essential purchases when your luggage is delayed and reimburse you for permanently lost or damaged bags and their contents.

Delayed baggage reimbursement provides funds for essentials like clothing and toiletries when your checked bags are delayed, typically for 6 hours or more. This benefit can save your vacation by covering the cost of replacement items while you wait for your luggage to arrive, with reimbursements ranging from $100 to $500 per traveler.

Lost luggage reimbursement kicks in when an airline or common carrier permanently loses or damages your checked or carry-on bags. Coverage limits typically range from $2,000 to $3,000 per person, potentially saving you thousands if valuable items were in your luggage.

Cards that offer baggage protection benefits:

• Chase Sapphire Reserve. Covers lost baggage up to $3,000 per passenger, delayed baggage after 6-hour delays up to $100 per day for 5 days | $550 annual fee

• American Express Platinum. Covers lost baggage up to $3,000 for carry-on, $2,000 for checked, delayed baggage after 6-hour delays up to $1,000 | $695 annual fee

• Capital One Venture X. Covers lost baggage up to $3,000 per trip, delayed baggage after 6-hour delays up to $100 per day for 5 days | $395 annual fee

• Chase Sapphire Preferred. Covers lost baggage up to $3,000 per passenger, delayed baggage after 6-hour delays up to $100 per day for 5 days | $95 annual fee

What baggage protection covers

Delayed baggage benefits typically cover reasonable expenses for clothing, toiletries and other essentials you need while waiting for your bags. Lost luggage coverage reimburses you for your bags and their contents up to the coverage limit, though most cards have lower limits for high-value items like electronics and jewelry.

These benefits typically exclude items like cash, tickets, documents, hearing aids, prosthetic devices and business samples. They also don’t cover damage from normal wear and tear or pre-existing damage. Most protections also exclude baggage delays returning to your home city.

To file a claim, you’ll need to report the delay or loss to the airline or carrier and get documentation that you can provide to your card issuer. Keep all receipts for purchases made during the delay, as well as proof of ownership for any valuable items in lost luggage. You’ll need to submit your claim within 20 to 90 days, depending on the card issuer’s policy.

Other travel protections

• Travel accident insurance. Covers death or severe injury while traveling on common carriers, offering $250,000 to $1,000,000 on premium cards when you pay for tickets with your card.

• Emergency evacuation insurance. Covers transportation costs if you need medical evacuation during your trip, including flights to medical facilities or even back home. Premium cards offer coverage between $50,000 to $100,000 when you book your trip with the card.

• Travel and emergency assistance services. Provides 24/7 help with travel emergencies, connecting you with legal referrals, medical services, translation assistance and help replacing lost documents. Most issuers also include emergency card replacements within the U.S. and abroad. Keep in mind that while the assistance service costs nothing, you’ll pay for any actual services they arrange for you.

• Roadside assistance. Helps with flat tires, dead batteries, lockouts and towing. Premium travel cards typically include a few free service calls each year, while basic cards offer the service but charge per use, usually $50 to $100 per incident.

How to maximize your credit card protections

Having powerful purchase and travel protections tucked into your credit card perks is only valuable when you use it. The challenge isn’t just knowing these benefits exist, but remembering you have them and having the documentation to use them when your headphones suddenly die a year after purchase or your flight gets canceled during a snowstorm.

Many cardholders leave hundreds or even thousands of dollars on the table simply because they forget what card best covers which problem. Here’s how to make sure you don’t miss out when these protections could save your day (and your wallet).

1. Keep proper documentation

Good record keeping is essential to successfully use credit card protections. Without proper documentation, your claims may be delayed or denied, even when they should be covered.

Most online purchases now come with digital receipts stored in your email or retailer accounts, making documentation easier than ever. For in-store purchases where you only receive a paper receipt, it helps to take a photo before it gets lost or the thermal paper fades.

Here’s how to simplify tracking purchases that might need protection:

• Create a dedicated email folder. Label it receipts or purchases for all order confirmations.

• Use online retailer accounts. Access your purchase history through Amazon, Best Buy and other retailers when needed.

• Take photos of paper receipts. Save them to a dedicated album or folder in your phone or cloud storage.

• Try receipt management apps. Expensify or Evernote can categorize and search receipts.

• Set calendar reminders. Add notifications for when manufacturer warranties on major purchases expire.

For travel bookings, save confirmation emails in a dedicated trip folder, take screenshots of boarding passes and keep any email about schedule changes or disruptions. These digital records are typically essential to file successful claims.

2. Use the right card for different purchases

Strategic use of your credit cards can maximize your protection coverage. Match your cards to different types of purchases based on the specific benefits each card offers.

For example, use cards with extended warranty and purchase protection for electronics and appliances. Save cards with travel protections for flight and hotel bookings. Use cell phone insurance cards to pay your monthly phone bill.

For example, here are the cards I use for different transactions:

• Citi Double Cash. 24-month warranty extension for electronics | $0 annual fee

• American Express Platinum. Strong trip delay and cancellation coverage for flights | $695 annual fee

• Capital One Venture X. Travel protection and 10x points for hotels | $395 annual fee

• Chase Sapphire Preferred. Primary rental car insurance for car rentals | $95 annual fee

• Wells Fargo Active Cash. $600 cell phone protection for phone bills | $0 annual fee

Keep in mind that credit card benefits can change. Major benefit changes typically occur when a card switches payment networks (like Visa to Mastercard) or when the card issuer updates its overall benefits package. That’s why it helps to set calendar reminders to review your cards’ benefits at least once a year.

3. Be thorough when submitting claims

The difference between an approved claim and a denied one often comes down to how thoroughly you document and present your case. Claims departments process thousands of requests, and incomplete submissions are the easiest to reject.

When something goes wrong with a purchase or travel arrangement, document as much of what happened as you can.

For damaged items, take clear photos from multiple angles showing the damage. For rental cars, take date-stamped photos of the vehicle from all angles immediately upon pickup, and if damage occurs, take additional photos of the damage before returning the vehicle.

For travel disruptions, ask for a document that reflects the disruption date and reason from the airline — an official email, text notification or counter agent printout works best. Keep receipts for any expenses you incur as a result of delays or cancellations.

Here’s how to make sure your submitted claim is comprehensive:

• Submit as many requested documents as possible. Provide everything you can from the claims checklist, even items that seem unnecessary or redundant.

• Write a clear description. Provide a concise account of what happened and how it relates to the card’s coverage.

• Get professional repair estimates. Obtain quotes from reputable service providers, even for moderately priced items.

• Explain any missing documentation. Attach a brief digital letter noting which requested documents aren’t available and why.

For lower-value claims, the process might feel more effort than it’s worth, but card issuers often approve these quickly to maintain customer satisfaction. The documentation requirements may also be less stringent for smaller claims, making them worth pursuing.

More stories in our credit cards series

• Spend smart, travel far: Your guide to credit card rewards cards

• Cashback credit cards that help you save on groceries and gas

• What is a 0% intro APR card? How this tool can save you on interest charges

• What happens to your credit card debt after you die?

• How to pay off your credit card debt: A step-by-step game plan to break free from your balance

FAQs: Credit card insurance and protections

Here are answers to common questions about credit card protections and how to make the most of them. And take a look at our growing library of personal finance guides that can help you save money, earn money and grow your wealth.

Am I more protected when I pay with a debit card or a credit card?

Credit cards offer significantly stronger protections than debit cards. When fraud occurs on a credit card, you’re typically limited to $50 liability (and often $0 with most major issuers), while debit card fraud can drain your actual bank account immediately, leaving you without access to your money during the investigation. Credit cards also offer purchase protections, extended warranties and dispute rights for goods and services that debit cards typically don’t include. Learn more about where you shouldn’t use your debit card.

Does credit card rental car insurance cover a second driver?

Yes, most credit card rental car insurance covers authorized additional drivers listed on the rental agreement, but only if they meet the same eligibility requirements as the primary renter. The key is ensuring all drivers are officially added to the rental contract. Some cards may have restrictions on who qualifies, so check your specific card’s benefits guide or call the benefits administrator before your trip to confirm coverage extends to your additional driver.

How do I know if my card has cellphone protection?

The easiest way to verify if your card offers cellphone protection is to check your benefits guide, which can typically be found online in your card issuer’s digital account portal. You can also call the customer service number on the back of your card and ask directly. Most cards that offer this benefit prominently feature it in their marketing materials, but some newer or updated benefits might not be widely advertised. Remember that to qualify for this coverage, you need to pay your monthly cell phone bill with the eligible card.

About the writer

Yahia Barakah is a personal finance writer at AOL with over a decade of experience in finance and investing. As a certified educator in personal finance (CEPF), he combines his economics expertise with a passion for financial literacy to simplify complex retirement, banking and credit topics. He loves empowering people to make informed financial decisions that improve their everyday and long-term wellness. Yahia’s expertise has been featured on FinanceBuzz, FX Empire and EarnForex. Based in Florida, he balances his love for finance with freediving, hiking and underwater photography.

Article edited by Kelly Suzan Waggoner

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